There are signs of life in travel and hospitality, and promotional products distributors report that sales are again beginning to churn with clients in these sectors.

With business shutdowns, stay-at-home orders and fear over traveling and congregating in person, the COVID-19 pandemic caused massive declines in revenue and jobs over the last 12 months in hospitality and travel.

Travel & hospitality is again starting to present serious sales potential for #promoproducts distributors. Here's why in under 2 minutes. @Tim_Andrews_ASI @ASI_MBell @asicentral @Melissa_ASI pic.twitter.com/nxjzg3Cd1q

— Chris Ruvo (@ChrisR_ASI) March 25, 2021

However, a combination of factors is now brightening prospects for the industries.

The COVID vaccination rollout is gaining steam, and a growing number of states and cities are easing coronavirus-related restrictions on businesses, including bars and restaurants. Plus, more stimulus money is reaching households, whose savings were already up dramatically over pre-pandemic levels, giving individuals and families cash to spend on eating out and trips.

All that’s starting to translate to real results for travel and hospitality.

Data from OpenTable, an online restaurant reservation service provider, suggests that the number of in-person seated diners is up considerably from mid-December. While still down almost 30% from 2019, U.S. hotel occupancy hit a 20-week high of 49% on the week ended March 6, The Wall Street Journal reports. Spending on Airbnb and Vrbo, both vacation rental sites, has surged and was by early March above pre-COVID levels, Earnest Research reports.

Betsy Cole is 81, fully vaccinated and booking trips to Boston, Morocco and the Greek Isles. She and other Americans are spending more on in-person services, powering the early stages of an economic revival. https://t.co/NFoKhZzyHU

— Sarah Chaney Cambon (@sechaney) March 19, 2021

“The number of transactions for air travel, lodging and on online travel platforms has climbed sharply in recent weeks, and is now at the highest level since the pandemic began,” the Journal reports.

Indeed, airports recently had a couple of their busiest days since before COVID shutdowns in March 2020, with flight bookings on the rise. Airline executives at United Airlines and Delta Air Lines say they could stop losing money as early as this month. “We’ve seen some glimmers of hope over the last year, but they’ve been false hope,” Delta Chief Executive Officer Ed Bastian told The Wall Street Journal. “But this seems like it’s real.”

Promo & Print Opportunities

Promo distributors say at least some travel/hospitality clients agree with Bastian’s assessment.

Steven Flaughers, president/CEO of Proforma 3rd Degree Marketing (asi/300094), just executed an order of branded travel document folders and business cards for a travel agency, Fairlawn, OH-based Chima Travel, that’s starting to see increased activity.

“While our industry was devastated, we’re hanging in there and each day seems a little brighter,” says owner Lance Chima. “Corporate travel has returned, but not to where we were 13 months ago. Leisure travel is improving. Once the vaccines are more readily available, borders reopen, and the angst of people traveling again has subsided, I know our business will go gangbusters.”

Glenn Leonard and Randy Olson, business partners and California-based business development managers with Top 40 distributor American Solutions for Business (asi/120075), work with more than 100 casinos/resorts. In 2020, the promo pros kept business moving with these clients by providing personal protective equipment, but within the last month inquiries for traditional promotional products have increased noticeably. That’s led to sales.

“We just signed off on a $20,000 deal,” says Leonard. “The orders are generally smaller than before COVID, but we’re definitely seeing more traction.”

Projects include providing merchandise for small event giveaways, as well as coming up with creative solutions to help casinos/resorts entice customers to return. The latter includes initiatives in which valued end-customers receive high-end branded merchandise in exchange for visiting casino properties/events. As an example, customers might receive a three-piece luggage set, with the end-user getting one piece each time they attend one event that’s part of a three-event series. “It gives the customers incentive to keep coming,” Leonard says.

Olson notes that there’s a casino/resort client in Las Vegas that had about 1,200 food and beverage employees before COVID. The business has been hiring lately and is back up to around 700 food and beverage employees, he says.

“As a vendor partner, that means to me that they see the future getting better,” says Olson, who notes there’s opportunity for promo distributors to provide new employee gifts and/or “welcome back” packages to rehired workers for hotels, casinos and restaurants. That’s something he and Leonard are working on with clients. “It helps with recruiting and retention and shows employees that they’re valued,” Olson explains.

Distributor Danette Gossett has started to see some sales inquiries return from hospitality/travel clients.

Distributor Danette Gossett is based in the Miami area and, when it comes to hospitality, works mostly with cruise lines. That industry has been especially devastated by the pandemic, and Gossett reckons it will be the third or fourth quarter of 2021 before she starts to see substantial inquiries from cruise clients. Still, some ship wheels are already starting to turn.

“We’ve had inquiries for employee appreciation gifts, as well as one cruise line that has a full ship charter scheduled for early 2022,” says Gossett. “The company that has chartered the ship was looking for turndown gifts in addition to onboard signage.”

While the visitor and convention bureaus that Gossett has worked with don’t appear ready to spend yet, the owner of Gossett Marketing (asi/212200) has experienced interest from others in hospitality.

“We’ve had conversations with a large restaurant that’s undergoing a branding change,” Gossett says. “They’ve indicated that they would be ready to talk seriously in April. We don’t know the real outcome as of yet, but it’s an opportunity.”

The bottom line is this: Things are starting to pick up for travel and hospitality. There may not be a deluge of sales there yet for promo, but opportunities for distributors are starting to re-emerge. Savvy sales pros could put themselves in prime position to capitalize by proactively connecting with existing clients and prospects now.